ARTICLES

Accreditation for STO Projects

Security token offerings (STOs) are quite a new thing, but they are quickly replacing ICOs. STO is essentially a project financing model that involves the selling of tokenized assets through a crowdsale in exchange for funding. These types of tokens give investors some rights to the company including but not limited to ownership, periodic dividends, and voting.

In essence, STO allows investors to get a share of the project’s profit and participate actively in influencing the company’s operation. STO are subject to tight regulatory control and compliance, and only accredited investors can participate in a security token offering. More importantly, the STO model gives start-ups a better opportunity to reach more potential investors and reach their goal faster.

To attract and retain this category of investors, first you need to be accredited for the investors to believe and have trust in your offerings. Accreditation is a way of getting your project/company filtered through various processes that assure the reputation and authenticity of your organization thus creating confidence and attracting more and more investors. The process, although not extremely cumbersome, certainly needs your time and dedicated efforts.

Got worried? Don’t be!! ACO does exactly the same for you to ensure, your burden of going through various processes is reduced to a great extent wherein experts from ACO take care of the proceedings for you…

For more details, visit our website www.acoplatform.com or drop an email today to info@acoplatform.com and we will be delighted to help you!

Are you ready for a REVIEW to take one step towards accreditation of your STO project?

As a step of getting your accreditation, you need to make sure you get the review of your important documents and processes done. All issuers need to submit an application, Whitepapers and other documentation that provides the information that are necessary for institutions such as institutional banks, insurance and escrow account service providers. However, while getting these documents together is a seemingly easy task, you need to make sure that all these are as per the guidelines and are properly scrutinized before they are presented for a review by such institutions. Sounds cumbersome, not to worry, this is exactly one of our 5 services where we take all the worries off you not just by guiding you through the necessary documents but also ensuring they go through a review before they go to the external reviewers. To know more about us, please write to us on info@acoplatform.com or visit our website www.acoplatform.com

Happy to announce ACO services for Accreditation. Here is the first of our 5 services on offer.

REVIEW — it all starts from here!!

Issuers need to submit an application. Whitepapers and other documentation that provides the information are necessary for institutions such as institutional banks, insurance and escrow account service providers depends on the subject for a complete review.

Keep reading for the series of our services For more details, write to us on info@acoplatform.com

Audit — Let’s create confidence within Potential Investors

Once you are through the Review service, here is our next service — Audit. Audit ensures every project is examined by various sectors of the financial field, and check business’s financial records to verify they are accurate. Evaluate the evidence to determine and report on the degree of correspondence between the information presented (i.e., the financial statements) and the established criteria. Audit is performed by a third party. Auditors will follow auditing standards known as generally accepted auditing standards (GAAS). Audit reports prepared by auditors are written using generally accepted auditing standards. Clients should organize the financial documents for auditors to easily access records and get a clear view of your business.

Here are some standard financial documents:

  • Financial statements, which include the balance sheet, income statement, statement of cash flows, and note disclosures

  • Credit card statements

  • Receipts/Invoices/Journal entries. Auditor will use the records to test for accuracy and discover errors.

The more information you provide and the more organized you are, the faster the audit process.

So, get started with our services offering and get your STO project kicked-off to attract more and more investors. For more details, write to us on info@acoplatform.com or visit our website www.acoplatform.com

COMPLIANCE — Need a solution? Here we are!!

Now that your project has gone through Review and Audit successfully, Compliance is the next step that not only ensures that your organization/project complies to the mandatory processes but also give a feel of trust to your potential investors. Be it an established firm or a start-up, ACO brings compliance solutions to all your business ideas. The followings are some of the most commonly requested services:

•Funds Authorization

•Advice on documentation for funds distribution

•Anti-money laundering/anti-terrorism program

•Advice on corporate governance issues

•Assist in the implementation of new regulatory requirements

In developing effective compliance policies and procedures manual that are SFC compliant and meet the practical needs of your company. If you already have a manual in place, we would examine and update it to ensure compliance.

Interested in engaging with us for any of these services from our experts? Write to us on info@acoplatform.com.

To know more about our offerings and learn more about us, visit www.acoplatform.com.

ACCREDITATION — Just one more step and we are there

Woo hoo!!! We have completed Review, Audit as well as Compliance check successfully!!! We are almost there…Just one more step and we have the Necessary Accreditation to attract investors to our project.

What is Accreditation though?

Issuers submit a project including full detailed reference materials that prove the issuers’ ability to execute the project. All submitted documents will be reviewed and evaluated by accounting firms, insurance companies, banks and attorneys and ACO will release a report for issuers. Provide the Financial Modelling and Valuation Analyst Accreditation. The accreditation covers:

  1. Finance

  2. Accounting

  3. Financial Modelling

  4. Business Valuation

  5. Budgeting/ Forecasting

  6. Business Strategy

We help you with all of these points to make sure you don’t miss any of them thus avoiding any delays or misses in getting the accreditation through….

Interesting, isn’t it…then connect with us right away. Write to us on info@acoplatform.com or visit www.acoplatform.com to know more about us and connect with us…

STO (Security Token Offering ) — What is it ? just like initial Coin Offering (ICO), an investor gets a crypto coin or, what is called, a token against their investment. A Security Token, however, represents an investment contract into an underlying investment asset, such as stocks, bonds, funds and real estate investment trusts. A Security Token represent the ownership information of the investment product, recorded on a blockchain. when you invest in traditional stocks, for example, ownership information is written on a document and issue as a digital certificate. For STOs, its the same process, but recorded on a blockchain and issued as Token. STOs, in other words, are hybrid approach between cryptocurrency ICOs and the more traditional initial public offering IPO because of its overlap with both of these methods of investment fundraising. keep reading for more information as ACO gear up for a GRAND LAUNCH of accreditation services during WBS in Tiwan on 25 to 26 April 2019

STOs, Accreditation and ACO

Let’s get the basics of STOs

The meteoric rise of ICOs throughout 2017 and early 2018 was unprecedented and brought about an entirely new method for raising enormous sums of funding in mere minutes. However, the sheer volume of ICOs that turned out to be scams, didn’t deliver on their promises, or ran out of funding before releasing a product led to the precipitous decline of the ICO in the latter half of 2018.

Commonly referred to as ‘security tokens,’ these assets are securities representing equity or debt with a digital wrapper around them — designed to provide a suite of advantages and flexibility to the assets. Going beyond ICOs, the ‘Security Token Offering’ (STO) has garnered widespread attention as an ecosystem of investors, service providers, exchanges, and more jostle for position in a blossoming market. Security tokens have some intriguing prospects, and the STO presents a valuable tool for companies to issue digital assets on the blockchain.

Security Tokens and Security Token Offerings (STOs)

Common misperceptions around security tokens are that they are different from securities. Although they exist on a blockchain, they are ostensibly securities, subject to the same regulations and case law precedence as traditional securities.

However, security tokens offer some unique advantages — particularly in improving secondary market liquidity, reduced compliance costs, automating trade restrictions, providing fractional ownership, and enabling asset interoperability.

STOs have opened an opportunity for businesses to raise funds by issuing digital security tokens to investors in a regulatory-compliant manner. The advantages exist for both the investor and the issuer, while also providing much better assurances against fraud compared to an ICO.

STOs focuses on the launching of new security tokens and not tokenizing existing financial assets.

One of the most straightforward and beneficial applications of an STO is with an SME looking to raise funding when they cannot tap into commercial banking services. Parallel with the rise of other DeFi services, SMEs can access open financial services — issuing security tokens for investors to obtain on the blockchain. This has important consequences for lowering barriers to access for retail investors and concurrently providing powerful financial services to SMEs in local and regional areas where they have historically been limited in their financial capacities.

How ACO helps

Who we are?

Accredited Coin Offering (ACO) is a new framework for ICOs that reduces the risk for both token issuers and investors through accreditation, ensuring successful fundraising.

Why do we need ACO

The current initial coin offering environment carries high risks for investors and issuers, which makes achieving success tougher, also, investors and issuers have limited guidance to rely on. While challenges differ depending on the audience, both groups will benefit from the potential solution.

Continuation to STO Understanding…

To Continue from where we left last time, here is some more about STOs.

What Are The Benefits Of STO?

During the 2017–2018 ICO mania, many token issuers have sold investors bags of tokens without any economic rights, value or regard for existing securities laws.

Security token offerings are meant to be a regulatory compliant alternative to regular token sales. They aim to correct perceived inequalities on the investor side, such as granting security token holders rights to dividends or other predefined revenue streams.

STO tokens are beneficial to the issuers, too. There is no need to proclaim tokens as being without any intrinsic economic value, and they typically have clearly defined stakeholder obligations regarding the token distribution, issuance procedure, and secondary trades.

Other advantages that come with security tokens are:

· Credibility. ICO space, these days, is believed to be a chaos, to say the least. Many people were scammed, even more projects did not deliver what they promised, and most investors remain stuck with useless tokens. In contrast, STOs follow all regulations and allow blockchain and crypto currencies to restore some credibility.

· Improving traditional finance. While traditional securities are slow and expensive due to their old infrastructure and layers of intermediaries, security tokens facilitate services at a lower cost.

· Programmability. Security tokens can be programmable and enforced by smart contracts.

· Free market. Borders or local regulations do not limit security tokens.

· Many investors. Traditional security deals involve only local individuals, while security tokens are open to anyone on the internet.

· Reduced institutional manipulation. Free and open market with fewer mediators should reduce market manipulation, at least in theory.

· More liquidity. Security tokens will trade on specialized security exchanges so investors will have a convenient way to liquidate their assets.

Most importantly, security tokens and STOs allow companies to create a new set of stakeholders with novel permutations of debt, equity or contributor roles.

As such, security tokens are generally considered an improvement over ICOs. They address the fundamental flaws surrounding utility token sales and have the potential to improve traditional securities.

Of course, ACO again comes handy here when you talk about launching your own STO Project for raising funds….how?? Just visit our website www.acoplatform.com to know how we can help get your STO project worth attracting more and legitimate investors or just drop an email asking for our services catalog to info@acoplatform.com and we will be delighted to partner with you.

 

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